INTEGRITY by Chubb Insurance

A manufacturer embedded sensors and actuators into an automated process, providing end users with real-time production outputs and document quality control and helping manage inventory levels to optimize production. A data integrity concern emerged which led to a reduction in output for the manufacturer; this caused delays in the delivery of their products and costs overruns, for which they were sued by a large customer. Chubb worked collaboratively to investigate, defend, and resolve the lawsuit.

The insured is a contract manufacturer. On behalf of an OEM, they manufacture, test and deliver completed market-ready medical devices for use in the U.S. and select overseas markets. A serious manufacturing defect was discovered after an abnormally high number of reported patient injuries, and the regulator ordered the OEM to initiate a Class I recall. Chubb’s integrated liability response, which included products liability, product recall, and the OEM’s financial injury, was essential in addressing the interrelated and complex insurance issues.